Madhu Kela, the visionary stock picker, has reminded us that good news and good prices never go together. Bad news ushers in good prices which is the ideal opportunity for us to aggressively grab high-quality multibagger stocks with both hands

Novices bolt from Dalal Street ….

Dalal Street has a deserted look nowadays.

Barring a few die-hard punters like me, there is no one around.

Even MMB is deserted.

“This kind of market is best described as maarkaat. Better remain inside your house and lock the gate” a distinguished silver member said.

“Breather .. at last market is closed today ..” another punter added with a sigh of relief.

We cannot blame the novices for bolting because the Bears have butchered the Nifty and the Sensex.

In fact, the market capitalisation of the entire mid and small-cap has been slashed by a whopping 50%.

BSE “B “group that consists of Mid and small caps market cap has reduced by half. It was Rs 24 lac crore in Dec 2017 and now at 11.55 crore. Similar market cap level was seen in March 2016 when Sensex was at 25K. For B group this is bear market.

Some experts tried to soothe nerves of the novices by pointing out that despite the carnage the markets have outperformed other investment classes and given a net CAGR return (after inflation) of 12% since 2011.

It is worth recalling that L&T Finance is one of the all-time favourite stocks of the Billionaire.

He bought his first lot in December 2016 at the throwaway price of Rs. 80 when the markets were undergoing a similar crisis. He explained that L&T Fin is going through a “Major Shift Towards Value Creation” and that he has confidence in the abilities of the management.

In his latest interview, Madhu Kela reminded investors about his buy call on Pharma stocks.

“I was the first one who came to your channel and recommended buying pharma stocks but at these valuations — I will stick my neck out — you very rarely get these kind of companies down 30-35% and if it is for some fundamental reason, then one can understand that something has gone wrong. But if it for technical reason, then these are the times you have to stick your neck and put your money,” he said.

“Main saalon se bolte aa raha hoon ki ya to news acchha hoga ya bhav acchha hoga, jab news kharab hai to bhav acchhe hote hain or jab news acchha hota hai to bhav kharab hote hain (I have always said either news is good or the price is good. If news is bad, price is good and if news is good, price is bad)”, he added.

“If you really understand the company and if you have faith in the management, these are brilliant opportunities to buy these companies. Wherever the management is solid, they will be able to weather this storm and come out stronger,” he said with a big smile on his face.

In addition, Kotak Institutional Equities, which normally has a pessimistic view of the market, has confirmed that there are no liquidity fears in the NBFC sector. They have cheery-picked 7 NBFC stocks of the highest quality and fail-safe status and recommended a buy.

Conclusion

Prima facie, it is better if we obediently follow the directives issued by the Billionaires and visionaries and tuck into high-quality banking and NBFC stocks whenever there are dips. Otherwise, we will cut a sorry face when the stocks surge and revert to their glorious days!

The question is we buy at what price? still indian markets are very expensive…very soon the government will give garam chai in our hands (so as to sell and make a living)…topi pehna di!! my recommendation don’t buy but monitor for the next 3 months…a relief rally could be there…Us markets will go in for a big correction in coming months, charts show a big correction on global markets, load up your cash to buy during 2019 election time. till then be happy holding cash…!!!

First Modi Govt should explain how much LTCG TAX they expect after finishing the market with introduction of LTCG TAX.Govt should immediately remove LTCG TAX.Otherwsie people will send the Govt in same dustbin in which Modi Govt has sent the investors.

I agree. This bad phase started after the Budget on 1st Feb 2018 wherein FM introduced uncalled for and unnecessary tax burden in the name of LTCG on shares and equities while continuing with earlier introduced STT . This is the curse and fury of hapless poor investors who put in their hard earned money for a better inflation adjusted return, but this Government will never understand the mind set and psychology of millions of investors and common man alike.

The Advance/Decline ratio for sept is at 0.56 , This Data is available in NSE website for each month, the ratio of less than 0.6 was during December 2007 just before the mighty crash , investors should be in cash , as you may get bargain prices in all stocks, see heavy profit /loss booking in coming days.

Madhu Kela is a real Kela- most of us are fully invested – is he going to give money to us for investment-talking rubbish as usual-who does not know that buy is when prices are dirt cheap?
Jokers are always there to put salt on wounds

In recent times, derivatives market picked up in a great manner thanks to discount brokers. Ever since markets became shorters paradise. If I compare on last 5 years at least in known circles, traders who were regularly shorting made more money than even long term equity investors. One does not need any great analysis or charts or software or tips. Daily short 5 stocks from different sectors and contain trigger loss, your one big win out of 5 will give handsome returns. In India there are certain stocks that you can blindly short eg. Jet airways, Suzlon, JP A, PFS and lots of PSUs, pharma, steel, sugar etc., and you will make great returns each day. Death of a genuine investor and investing principles need to rewritten. If you will hit up on stock with a Corp Gov issue or some rumor, there won’t be any end to its falling. No wonder, Ashwin Guj is making a killing out of trading where as all seasoned investors (RJ, Dolly, Koch, Kedia, Bakshi etc..) are licking their wounds.

After lot of research and personal experience, I have shortlisted these stock advisories for long term investments. Have very good experience with all of them. You can choose yourself : 1. PA Wealth Advisors ( www.pawealthadvisors.com ) 2. Stock Axis (www.stocksaxis.com) 3. Stalwart (www.stalwartvalue.com)

Hello Team, I am an investor and my office is in NESCO building 3, Here is some finding and analysis for it, may help for your subscribers IT Building 4 is about to complete which is about 3 times of IT building 3 , this will add around 200cr in their revenue Building 4 is […]

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